Is Royal Gold, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Royal Gold, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently deemed overvalued based on its P/E ratio of 29, which is higher than the peer average of 27.25, and an EV to EBITDA ratio of 18.40, which also exceeds the peer average of 18.46. Additionally, the PEG ratio stands at 0.37, suggesting that the stock may be overpriced relative to its growth potential.
In comparison to its peers, Coeur Mining, Inc. has a P/E of 44.72 and Hecla Mining Co. has a P/E of 61.32, both of which are higher than Royal Gold's, yet the latter's valuation still appears excessive given its current ratios. Notably, Royal Gold has outperformed the S&P 500 year-to-date with a return of 46.95% compared to 13.30%, but its longer-term performance over 10 years shows a significant underperformance against the index, which returned 227.77%.